This is reflected in one of the indicators of the Industry Trust Index (IKI) on view of business conditions in the next six months, or the January-June 2023 period.
"Majority, or 60.5 percent of the businessmen declared their optimism toward industrial business conditions for the next six months. This figure rose from the previous month, with 58.1 percent," he noted here, Friday.
During the 2022 December IKI press conference, he outlined that most respondents harbored an optimistic view that market conditions would improve since policies from the central government are considered to be better.
Along with rising optimism of the business community, the percentage of businessmen with a pessimistic outlook declined to 15.3 percent in December 2022, from 18.1 percent in November 2022.
"Moreover, 24.3 percent of businessmen declared that their business condition is stable for the next six months," he noted.
"This figure is relatively unchanged when compared to the one from the previous month, with 23.8 percent," he stated.
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The ministry stated that the IKI figure in December 2022 reached 50.90, which indicates that the manufacturing industry is in the expansion phase.
"This figure rose by 0.01 when compared to the one in November 2022, with 50.89," he stated.
From the calculation result, 11 subsectors experience expansion, with a contribution of 74.9 percent to the gross domestic product (GDP) in the third quarter of 2022.
This figure has risen when compared to the contribution of 71.3 percent in November 2022.
According to Arif, the main causal factor behind this rise is the chemical material and goods from the Chemical Material Industry subsector that had a 7.2-percent contribution to the non-oil and gas processing industry's GDP.
Meanwhile, 12 subsectors experienced contraction, with a 25.1-percent contribution to the GDP.
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Translator: Sella P G, Fadhli Ruhman
Editor: Suharto
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